RTP and House Edge Explained

Why the Casino has the upper hand

What is RTP?

RTP stands for Return to Player and is a number which tells you how fair a casino game is.

For example if a game has an RTP of 96% this means for each 1$ wagered you would expect to get back, on average, 0.96$. The casino would take the remaining 0.04$ as their profit. This is the expected return from millions and millions of bets, not on any given session.

Higher RTP is better

A high RTP is good for the player, so make sure to play games with as high return as possible.

Online casino Slot Machines typically have an RTP between 90-99%.

Gonzo sitting with mobile casino

House Edge

The House Edge, or House advantage, is defined as the expected casino profit as a percentage of the player’s original bet.

Example:

If the House Edge is 1% the casino will on average win 1$ out of 100$ wagered.

For simple games like slot machines, the House Edge is the opposite of RTP.

HouseEdge = 1 - RTP

The reason the House Edge is defined in terms of the original bet size, rather than the total amount wagered is because the player may continue betting after the round has started. For example in case of blackjack the player may double the bet when the odds are in his favor. The final bet may then be several times the original bet.

Lower House Edge is better

Since the edge is always in the casinos' favor, you want to find games with as low house edge as possible.